All insightsBuilding systems

Prefab House vs LGS House: Which System Fits Your Project?

Compare panelised prefab houses and light-gauge steel buildings by appearance, structure, cost, delivery and design flexibility.

By Aytaç Emre Işık, Founder & Managing Director8 min readPublished 13 September 2026

The systems are related, but not identical

The terms prefab house and LGS house are often used interchangeably, yet they usually describe different product expectations. A conventional panelised prefab house prioritises affordability, repeatable details and rapid installation. An LGS or CFS house uses engineered cold-formed steel framing to provide greater architectural freedom and a more conventional finished-building appearance.

Both systems are factory prepared and assembled using dry construction methods. The important difference is how the structural frame, wall build-up, façade and project engineering are developed.

Panelised prefab houses

A typical economical prefab house uses a light steel frame combined with factory-prepared wall and roof panels. Standardised openings, simple roof forms and repeatable façade details keep production and installation efficient. The finished building normally has visible panel or cement-board joint logic and standard PVC doors and windows.

  • Suitable for cost-sensitive housing and site accommodation.
  • Fast production with standardised details.
  • Single- and two-storey layouts are possible, subject to engineering.
  • Simple pitched or monopitch roofs are commonly used.

LGS and CFS houses

Light-gauge steel and cold-formed steel buildings use roll-formed galvanized profiles designed as a complete structural system. Studs, tracks, joists, bracing and roof members are calculated for the building geometry and local loads. The frame can accept different insulation layers, boards, façades and interior finishes.

LGS is usually the stronger choice when the client expects larger openings, more complex elevations, higher thermal targets or an architectural appearance similar to a conventional villa.

  • Greater façade and roof design flexibility.
  • Precisely cut and numbered structural framing.
  • Compatible with ventilated façades, render systems and architectural cladding.
  • Project-specific structural calculations and production drawings.

Cost and programme

A standard panelised prefab house will generally have the lower initial cost because the system uses repeatable details and a limited finish palette. An LGS house may require more engineering, boards, insulation layers, façade components and site finishing, but it provides greater flexibility and a higher-value appearance.

Neither system has one universal price per square metre. Wind, snow, seismic criteria, thermal performance, fire requirements, room layout, glazing, MEP scope and destination logistics can materially change the final cost.

How to choose

Choose a panelised prefab house when speed, affordability and a straightforward layout are the main priorities. Choose LGS when architecture, façade quality, local code coordination and long-term residential use are more important. For either system, the final decision should follow a review of the site location, planning requirements, structural loads and expected finish level.

WhatsApp